Financial and Managerial
Accounting Exam Questions and
Answers 100% Pass
What is the accounting equation? - CORRECT ANSWER:-Assets = Liability +
Owners' Equity
Please explain the 3 parts of the accounting equation - CORRECT ANSWER:-
Assets = Cash, Accounts Receivable (AR), trademarks/patents, investments
Liabilities = claims by debtors, Accounts Payable (AP)
Equity = claims by the owner
Debit is always on the _________ and Credit is always on the _________. -
CORRECT ANSWER:-Debit is on the LEFT and credit is on the RIGHT.
Who is the "father of accounting" and in what year did he publish his book? -
CORRECT ANSWER:-Luca Pacioli
,Summa de arithmetica - 1494
Why do we need accounting? - CORRECT ANSWER:-To discover financial
inconsistencies, fraud
Analyze and predict budgets
Compare different companies' financial reporting and performance
Define "accounting" - CORRECT ANSWER:-A way of recording, analyzing and
summarizing transactions of a business.
What is the "language" of accounting? - CORRECT ANSWER:-Double entry
bookkeeping
What is the idea of double entry? - CORRECT ANSWER:-The idea is that each
entry is written down twice - Debit and Credit
What are the three main steps of accounting? - CORRECT ANSWER:-1.
Recording the information
2. Ledgers
3. Financial statements
Cost and management accounting is concerned with providing management
information concerning what? - CORRECT ANSWER:-1. Planning
2. Control
3. Making decisions
, What are some of the roles of Managerial Accounting? - CORRECT ANSWER:-
Cost accounting
Budgeting
Making management decisions
Evaluating performance
Budgeting for capital costs and making decisions
Price formation
What are some of the roles of Managing Finance? - CORRECT ANSWER:-
Planning and managing cash flows, including currency flows
Long-term financing decisions
Managing financial risks
Financing for investments
Managing working capital
What are some of aspects of preparing financial statements? - CORRECT
ANSWER:-Financial reports
Tax reports and calculations
Providing other info. for external users
Accounting Exam Questions and
Answers 100% Pass
What is the accounting equation? - CORRECT ANSWER:-Assets = Liability +
Owners' Equity
Please explain the 3 parts of the accounting equation - CORRECT ANSWER:-
Assets = Cash, Accounts Receivable (AR), trademarks/patents, investments
Liabilities = claims by debtors, Accounts Payable (AP)
Equity = claims by the owner
Debit is always on the _________ and Credit is always on the _________. -
CORRECT ANSWER:-Debit is on the LEFT and credit is on the RIGHT.
Who is the "father of accounting" and in what year did he publish his book? -
CORRECT ANSWER:-Luca Pacioli
,Summa de arithmetica - 1494
Why do we need accounting? - CORRECT ANSWER:-To discover financial
inconsistencies, fraud
Analyze and predict budgets
Compare different companies' financial reporting and performance
Define "accounting" - CORRECT ANSWER:-A way of recording, analyzing and
summarizing transactions of a business.
What is the "language" of accounting? - CORRECT ANSWER:-Double entry
bookkeeping
What is the idea of double entry? - CORRECT ANSWER:-The idea is that each
entry is written down twice - Debit and Credit
What are the three main steps of accounting? - CORRECT ANSWER:-1.
Recording the information
2. Ledgers
3. Financial statements
Cost and management accounting is concerned with providing management
information concerning what? - CORRECT ANSWER:-1. Planning
2. Control
3. Making decisions
, What are some of the roles of Managerial Accounting? - CORRECT ANSWER:-
Cost accounting
Budgeting
Making management decisions
Evaluating performance
Budgeting for capital costs and making decisions
Price formation
What are some of the roles of Managing Finance? - CORRECT ANSWER:-
Planning and managing cash flows, including currency flows
Long-term financing decisions
Managing financial risks
Financing for investments
Managing working capital
What are some of aspects of preparing financial statements? - CORRECT
ANSWER:-Financial reports
Tax reports and calculations
Providing other info. for external users
